UK large-cap ETFs have attracted an estimated net inflow of $3.38bn in 2026, their strongest year since 2020 when they were up $4.5bn, according to Morningstar.
This influx builds on the far smaller $0.2bn inflow seen in 2025, itself a reversal of the net outflows brought by 2024 when flows fell by $49m and 2023 when they slid by $551m, Morningstar data found.
In total, this brings the total net assets in UK large cap ETF’s to more than $53bn as of the end of September 2026.
UK large-cap ETFS: Annualised net flows – UK large-cap ETFs benefit from a change shift in investor sentiment
Michael Born, Morningstar analyst, said: “Investors are looking at the UK with fresh eyes. The FTSE 100 has outperformed the MSCI World over the five years to September 2026 in sterling terms, while higher defence spending, a bull cycle in commodity prices and a rerating of banks and insurers have been key market drivers since 2022. The UK market is naturally exposed to many of these themes.
“Flows into passive funds typically follow performance, but they also reflect investors looking to diversify away from US mega-cap technology and broaden their equity exposure. Most of the money has gone into market-cap-weighted trackers, meaning investors are backing many of the companies that have led the UK market’s recovery, including HSBC, Shell and Rolls-Royce.
“Still, the challenges facing UK active funds remain, with the UK large-cap category as a whole seeing aggregate outflows of $7bn over the year to August 2026.”
